Earnings were up for AirNet Systems Inc. in the second quarter, despite declining revenue as banks shipped fewer checks with the Columbus, Ohio, air courier.
The company said last week that its net income climbed 78% from the year earlier, to $3.5 million, or 35 cents a share, though revenue fell 5%, to $42.2 million. Lower fuel expense and depreciation contributed to cost reductions, but the company spent more on aircraft maintenance and ground couriers.
In its bank services unit, its largest line of business, revenue fell 11%, to $25.9 million. The company said its volume of cancelled checks fell 27%, as measured in pounds shipped per flying day. The volume of unprocessed checks, interoffice mail, and weekend shipments also declined. (AirNet planes also deliver American Banker.)
Bruce D. Parker, AirNet's chairman and chief executive, said in a press release, "The current growth in express services revenues is not sufficient to offset the accelerating decline in bank services revenues, which will require us to further reconfigure and reduce AirNet's air transportation network and also reduce other expenses in the future. Unfortunately, as we go forward, AirNet's profitability will also be significantly and adversely affected."
